tax-guides

Why Cyprus’s GHS (Health Tax) Shouldn’t Be Ignored by Foreign Landlords

By KMB Team•3 min read•December 5, 2024

The 2.65 % GHS levy is small—but late-payment fines add up fast.

What Is the GHS Levy?

The General Healthcare System (GHS) funds Cyprus’s public health service. Since March 2020, all landlords—regardless of residency—owe 2.65 % of gross rental income.

Payment Deadlines

  • 30 June — rents collected January–June
  • 31 December — rents collected July–December

Penalties for Late Payment

Late filings trigger a 5 % surcharge plus annual interest (currently about 2–3 %). Persistent non-payment can lead to legal action and difficulties when selling the property.

Why Foreign Owners Must Pay Attention

Cypriot tax authorities share data with local banks and land registries. Staying compliant protects your cash flow and avoids complications with future transfers.

Best Practices

  1. Register on the Tax For All portal and schedule e-payments for 30 June and 31 December.
  2. Retain invoices—GHS is calculated on gross rent, with no deductions.
  3. Collect tax documentation if tenants withhold tax.
  4. Work with an accountant fluent in cross-border compliance.